Minister Dean MacPherson: Executive Statement on the nationwide plan adopted to address delayed and over-budget construction projects across South Africa

Honourable Speaker,
Honourable Members,

A year ago, when I addressed this House, I spoke about the crisis of delayed infrastructure projects, stalled construction sites, wasted public money, and the impact this had on the dignity of communities that had waited too long for progress.

I said then that these failures were not just numbers in a report - they were symbols of a broken system, and that the era of excuses had come to an end.

Today, I return to this House to report on the concrete steps we have taken to fix that broken system, and to outline the next phase of our reform agenda through the South African Construction Action Plan, or SACAP.

Honourable Speaker,

Let me begin with the simple truth that brought us here: the construction and public infrastructure system in South Africa was not working as it should.

Too many projects were stalled.

Too many contractors failed with impunity.

Too many budgets disappeared without results.

And too many communities saw promises, not progress.

That is why, over the past four months, the leadership of Public Works and Infrastructure nationally and across all nine provinces came together through MinMec to agree on a unified programme of action.

This work culminated on the 29th of October, when we unveiled the South African Construction Action Plan, a turnaround framework built on performance, accountability, and delivery.

To this end, I must thank the Deputy Minister and all nine MEC’s in Public Works for their unwavering dedication and support for this action plan.

We collectively own and will collectively implement it without fear or favour.

This plan did not emerge from theory or idealism.

It was informed by the failures we have witnessed, the lessons we have learnt, and the demands South Africans have placed upon us.

It responds directly to the systemic issues that have plagued our sector for too long: weak oversight, late payments, inconsistent procurement, uneven provincial performance, and a lack of consequence management.

And it is the product of collaboration across the country.

To this end, I want to welcome the support we have received from industry bodies like the Master Builders Association and the Black Business Council for the Built Environment, to economists and various publications.

Honourable Members,

Allow me to briefly outline the six core actions of SACAP, which now serve as the operating manual for the Public Works and Infrastructure sector:

First, accountability, including establishing Restriction Committees in all provinces, and blacklisting non-performing contractors so they can no longer move from one failed project to another.

We must and will stop those that rip off the state from being rewarded with more business. It should be an honour and a privilege to build for the state.

Instead, its seen as a get-rich-quick scheme.

Second, fixing cash-flow constraints: ensuring budgets are ring-fenced, payments are made timeously, and that financial blockages no longer bring projects to a halt.

Third, introducing digital infrastructure tracking: a unified enterprise resource planning-based system that will, for the first time, give us real-time visibility of every construction project in the country, from budget to physical progress.

Fourth, procurement reform: through Procurement War Rooms, real-time monitoring of major tenders, and faster evaluations to prevent avoidable delays.

Fifth, strengthening governance and audit outcomes: working directly with the Auditor-General to resolve findings in real time, improving internal controls, and enforcing compliance across all levels.

Sixth, professionalising the built environment: requiring all engineers, architects, quantity surveyors and project managers working with Public Works to be registered with their statutory councils.

These are the reforms that will propel construction and infrastructure to the next level in South Africa.

At the National Construction Summit two weeks ago, attended by over 2,000 stakeholders, all provinces, industry bodies, professionals, entities, and social partners endorsed SACAP and adopted the 2025 National Construction Summit Declaration.

That Declaration commits us to contractor blacklisting, faster approvals, digitalisation, skills development, improved performance frameworks and a unified approach to construction site security, community facilitation, innovation and sustainability.

Honourable Speaker,

We do not claim that everything is perfect.

It is not.

After decades of mismanagement, cronyism and corruption, it is not something that can be fixed overnight or even in a single year.

But we can say, with evidence, that things are getting better.

Just last week, the Quarterly Labour Force Survey confirmed that 130,000 new jobs were created in the construction sector in the third quarter of this year, nearly half of all new jobs in South Africa.

That is not a coincidence.

It is a direct result of stabilising projects, accelerating delivery, and rebuilding confidence in the sector.

After many years in which the construction industry struggled under declining public investment and sentiment, we are finally seeing the sector turn the corner.

Our work to tackle the construction mafia head-on has paid off where we have seen 250 arrests and 176 convictions for site stoppages.

In KwaZulu-Natal, we have seen a decrease in stoppages from 60 a month to less than 10.

All of this in just one year!

And with the implementation of SACAP’s six interventions - from procurement reform and cash-flow certainty to professionalisation and digital tracking - we expect even more jobs to be created in the months ahead.

This progress has not been achieved by the Department alone. It is a collective effort across government and our entities to get South Africa building and working again.

At the National Construction Summit, President Cyril Ramaphosa expressed his full support for SACAP and for the reforms we are driving to rebuild the construction ecosystem.

His message was clear: we must deliver faster, better, and with accountability.

To strengthen this mandate, I have also formally requested that Operation Vulindlela include SACAP as one of its priority focus areas.

OV’s proven ability to unlock structural reforms will be essential to ensuring that these interventions are implemented consistently across the state and not allowed to stall.

In two weeks’ time, I will be meeting with the Minister of Performance, Monitoring and Evaluation to discuss how we can partner with them to accurately measure these targets across government and through the Medium-Term Development Plan.

Honourable Members,

If SACAP is to succeed not only in stabilising the present but in shaping the long-term pipeline, we must strengthen the very institution responsible for preparing and coordinating our national infrastructure portfolio.

That institution is Infrastructure South Africa.

And that is why I want to reiterate, before this House, that the formalisation of Infrastructure South Africa as an independent entity is essential.

ISA’s role in project preparation, bankability, pipeline development and intergovernmental coordination is central to our vision.

We therefore await the urgent finalisation of their business case and call on the Minister of Finance to bring this matter to a finality.

Without a strong, well-resourced project preparation entity, we cannot sustain the pipeline needed to grow our economy.

Honourable Speaker,

But strengthening the system also means holding ourselves to the same standards we expect across the value chain.

It is therefore deeply troubling that our own head office, the CGO Building, was temporarily closed last week following inspection activities by the Department of Employment and Labour.

This is unacceptable.

It is a stark reminder that while we demand accountability from contractors and provinces, we must apply the same, if not higher, standards to ourselves.

The Director-General has briefed me and the Deputy Minister on the deficiencies identified, the immediate remediation plan, and the steps that must be taken to ensure compliance.

I have been advised that he has already instituted consequence management against officials who have been negligent or failed in their duties.

We cannot demand accountability from others while tolerating dysfunction at home.

To underscore the seriousness of this matter, I will be visiting the CGO Building to ensure its full compliance.

I want to see the progress for myself.

We must set the standard, not fall short of it.

Honourable Members,

Despite setbacks and despite the work that remains, the progress made over the past year is undeniable.

When we spoke here last year, we were dealing with a project environment that was 79% delayed, costing the state nearly R3 billion.

We were grappling with abandoned sites, contractor failures, construction mafia disruptions, mismanagement, and a backlog of projects that had grown year after year.

Today, we have:

• A national action plan is in place;
• Provincial alignment behind a common reform agenda;
• Digital systems that will track progress,
• Restriction Committees that will be launched,
• Procurement War Rooms launching;
• Performance reporting frameworks that will be implemented.

And of course, unprecedented jobs growth in the sector.

The turnaround is underway.

Not complete, but underway.

Honourable Speaker,

Let me conclude by reaffirming the commitment I made to this House one year ago: that the Department of Public Works and Infrastructure will become an economic delivery unit of South Africa, a department that builds faster, cleaner, and smarter.

SACAP is the roadmap that will take us there.

The National Construction Summit Declaration is the mandate that supports it.

And the work we have undertaken over the past year is the foundation on which we will continue to build.

We ask this House to support these reforms and to join us in the collective effort to rebuild public infrastructure, grow our economy, and restore trust in the state’s ability to deliver.

Thank you.

#GovZAUpdates